Alpha Metallurgical Resources, Inc. (NYSE:AMR) Q2 2023 Earnings Call Transcript

Andy Eidson: Jonnathan, it strictly has to do with how the market values our company. If we believe the valuation is appropriate, then we might consider going that direction. But it seems like we’re pretty long ways away from that. So — and as we saw back in the last two years, we’ve seen market — coal market prices spike to $600 a ton and $400 in everywhere in between, and company valuations didn’t catch up. So I think we’re very content to get to this pure share buyback program and stay there until the market determines it’s going to appropriately value us, and then we’ll consider some adaptation to the program.

Operator: Thank you. Our next question is from Lucas Pipes with B. Riley Securities. Please proceed with your question.

Lucas Pipes: Thank you very much operator. Thank you all for enduring one more question. So, there’s extensive media coverage of tax efforts up in the Elk Valley in separating the coal assets. And there’s a lot of talk of steelmakers from around the world, India, Japan, being potentially interested. And so, one very interesting just in terms of how strategically met coal is important. And so my question to you is, as you engage with steelmakers around the world, are you sensing — are you also having a sense that there’s interest in — on the vertical integration side, would appreciate your color on that? I know it’s a kind of higher level question, but any color you could provide would be interesting.

Andy Eidson: Yes, Lucas, I don’t want to declare myself a mind reader here, so these are strictly guesstimates. But — and my data set is limited, not a huge sample size here. But over the past 13 years or so that I’ve been closely monitoring back in the M&A world, there’s been waves of discussions around vertical integration. A lot of heat, a lot of activity and nothing really has ever happened, nothing material. So, I think things get stirred up when the market gets weak and perhaps people smell a little bit of blood in the water that these discussions begin. But until a big one happens, it’s kind of hard to imagine it in this current world. So, I don’t know there are some instances where it makes a lot of sense, but I just don’t know when anyone will actually get to the point of executing on something like that.

Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Andy Eidson for any closing remarks.

Andy Eidson: Well, thanks again, everyone, for dialing in. We appreciate your time and your interest in Alpha, and we hope you have a great rest of the day and a great weekend.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.